IT index falls 3 per cent in early trades on Cognizant guidance

Indian IT companies fell in early trades after software services firm Cognizant Technology Solutions Corp revised its 2012 guidance downwards on weak demand, while the sectoral index plunged more than 3 per cent, with Tata Consultancy Services (TCS) being the worst performer.

TCS shed 4.96 per cent to touch an early low of Rs 1,210.60 on the BSE, while Infosys lost 4.12 per cent to Rs 2,330.30 and Wipro was down 3.89 per cent to Rs 395.90. HCL Technologies was trading lower by 2.62 per cent, while Hexaware Technologies slipped 3.04 per cent.

The BSE IT index was quoting at 5,538.69, down 2.99 per cent and was the worst performer among the 13 sectoral indices.

On Monday, Cognizant posted 17 per cent rise in net profit at $243.7 million for January-March, but lowered its full - year forecast on low demand.

The Nasdaq-listed firm reduced its revenue growth estimates for the current calendar year to 20 per cent from its earlier forecast of 23 per cent, citing weak demand from North American financial services clients.

The company lowered its full-year revenue outlook to at least $7.34 billion, from $7.53 billion forecast earlier.